This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: Johnson Controls Sells HomeLink for $700M

Stocks in this article: JCI GNTX JPM

NEW YORK ( The Deal) -- Johnson Controls Inc. (JCI - Get Report) said Thursday it has a deal in place to sell its HomeLink unit to Gentex Corp. (GNTX - Get Report) for $700 million, part of the auto parts giant's broader campaign to shed its electronics offerings.

HomeLink is a vehicle-based control system that enables drivers to remotely activate garage door openers, entry door locks, home lighting, security systems, entry gates and other radio frequency products. The deal includes all of HomeLink's assets, intellectual property, facilities and employees.

Zeeland, Mich.-based Gentex said HomeLink has been integrated into its rearview mirror product for more than 10 years, and that it would be a good fit with its existing offerings.

"HomeLink is a strategic and welcome addition to our portfolio of automotive products," Gentex chairman and CEO Fred Bauer said in a statement. "Our two businesses share similar cultures and traits, both being people-oriented, innovative, leading and technologically-driven."

Gentex, which in addition to automatic-dimming rearview mirrors makes camera-based lighting and driver-assist systems for the automotive industry as well as aircraft windows and fire protection products, said that once fully integrated, HomeLink should add $125 million to $150 million in annual revenue, and boost companywide gross margins.

Milwaukee-based Johnson Controls in March said it had retained JPMorgan Chase & Co. (JPM - Get Report) to assist in the sale of its automotive electronics segment. The company, which ranks as the largest U.S. auto parts maker, said it separated HomeLink from the rest of its electronics unit to maximize the value of the businesses, saying the units "offer distinct advantages and synergies for different sets of strategic buyers."

An automotive source said Gentex was likely willing to pay up for HomeLink, the most valuable asset that Johnson Controls had on the block, but apparently was not interested in the entire business. Johnson Controls said it hoped to announce a deal for the remaining assets in the current quarter, with sources saying Chinese firms are the most likely buyers.

Written by Lou Whiteman

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,320.39 -96.46 -0.55%
S&P 500 2,008.32 -12.93 -0.64%
NASDAQ 4,669.5990 -13.8080 -0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs